New Zealand share prices closed 0.94 percent higher on Monday, propelled upwards by strong gains in Telecom and Fletcher Building, dealers said. The NZSX-50 index added 35.13 points to 3,754.83 on turnover worth 133.0 million dollars (88.1 million US). Rises outnumbered falls 72 to 35.
Market leader Telecom rose 10 cents to 4.61 dollars, although there was no news specific to the company. The second largest stock Fletcher Building jumped 41 cents or 4.4 percent to 9.65 dollars after the world's third-ranked cement maker Cemex launched a 12 billion US dollar take-over bid for Australia's Rinker. The action in the building sector in Australia provided a boost in sentiment for Fletcher Building, which is considered a prime take-over target, Lewthwaite said. The overall market has also gained momentum after the central bank decided last week against raising interest rates.
Discount retailer The Warehouse was down eight cents at 6.44 dollars after founder Stephen Tindall said he was not proceeding with a take-over offer at 5.75 dollars a share. Casino operator Sky City eased three cents to 5.11 dollars, having warned shareholders on Friday that it was feeling the effects of a slowing economy.
Fisher and Paykel Appliances rose 11 cents to 3.85 dollars and sister company Fisher and Paykel Healthcare lost seven cents to 4.25. Contact Energy was steady at 7.24 dollars.